Electrical contractors are responsible for the safety of their clients and the general public, providing a service that one cannot DIY. When they are not insured, they are not protected from lawsuits, business losses, and much more, which can be both costly and time-consuming. Perhaps your electrical contracting firm is insured, but do you have enough coverage?

Consider your insurance needs and the risks involved with this work, reach out to our team for assistance, and begin building your insurance portfolio today using these tips.

6 Reasons Electrical Contractors Need Quality Insurance Coverage  

If you’re looking for a little convincing, remember that you cannot purchase a blanket insurance policy like your predecessors. There’s more to litigation, damages, and errors in today’s world. You can’t solve problems with a handshake, and inflation is cutting into your buying power. As a result, you want to cover your business from every angle. 

1. Damages—Electrical contractors are responsible for the safety of their clients and the general public. When they are not insured, they are not protected from lawsuits, which can be costly and time consuming. 
2. Liability—The liability stemming from incidents, poor workmanship, etc. could also blow back on an electrician and become quite costly 
3. The General Public—Remember, the general public could file claims of environmental damage, theft could occur, vandalism is common, (and so much more could happen.) In short, you need to protect yourself from people you don’t know but who could come across your work. 
4. Injuries—Your business needs liability coverage for the general public, but you also need workers’ compensation insurance to protect your employees. 
5. Business Losses—Business income and interruption insurance is essential because shutdowns (like COVID-19) could cause massive losses.  
6. Local Municipalities—The state or another municipality may levy charges against your business for a number of reasons, and your liability coverage can step in to help.  

Types of Insurance for Electricians  

When you work in the electrical contracting field, remember that there are several types of insurance coverage available. Some companies need less coverage because they have fewer risks, but others need quite a lot more as their projects become more and more valuable (and much risker.) Generally, electricians need:

• Business Owner’s Policy—This policy can combine your liability and property coverage in an effort to save money.
• General and Commercial Liability—General liability coverage protects the firm from lawsuits brought due to injuries and illnesses caused on the job. Commercial liability coverage is often helpful if you have a storefront or workshop where you need coverage for visitors and/or employees.
• Commercial Property—Commercial property coverage covers your physical building/warehouse/storefront/workshop and everything inside it.
• Workers’ Compensation—Workers’ comp is required under the law in many circumstances, and it helps replace the income of injured workers, while also covering their medical expenses.
• Commercial Auto—All your work vehicles require specialized coverage. You cannot substitute your personal auto policy here.
• Inland Marine or Builder’s Risk Insurance—These two coverages can protect items sitting on worksites, in transit, or traveling on your vehicles, up to and including work tools, parts, inventory, completed projects, etc.
• Environmental Liability—Environmental liability coverage is an excellent choice if you have concerns about local statutes or believe that your work could adversely impact the local environment.

Remember, you do not have enough money in the bank to cover every loss. If you’re managing a legacy business, your parents, grandparents, etc. dealt with fewer issues than you did. They didn’t need the sort of coverage you need, and you should take that to heart.  

Contact Caparo Insurance for More Information on Electrician’s Insurance

Reach out to our team at Caparo Insurance if you would like to learn more about insurance for electrical contractors. We’re happy to answer your questions, market new policies, or work with other businesses that require insurance support.  

CATEGORY: Uncategorized | January 4th, 2023 | BY: libcosystadmin